ALIMENTATION COUCHE-TARD INC (ATD.CA) Stock Fundamental Analysis
TSX:ATD - Toronto Stock Exchange - CA01626P1484 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ATD. ATD was compared to 18 industry peers in the Consumer Staples Distribution & Retail industry. ATD has an excellent profitability rating, but there are some minor concerns on its financial health. ATD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATD was profitable.
In the past year ATD had a positive cash flow from operations.
In the past 5 years ATD has always been profitable.
In the past 5 years ATD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ATD (7.09%) is better than 94.44% of its industry peers.
The Return On Equity of ATD (18.26%) is better than 61.11% of its industry peers.
ATD has a better Return On Invested Capital (10.09%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATD is above the industry average of 8.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 18.26% | ||
| ROIC | 10.09% |
ROA(3y)9.03%
ROA(5y)9.16%
ROE(3y)22.29%
ROE(5y)22.49%
ROIC(3y)12.06%
ROIC(5y)12.01%
1.3 Margins
ATD has a better Profit Margin (3.50%) than 77.78% of its industry peers.
ATD's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.08%, ATD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ATD's Operating Margin has improved in the last couple of years.
ATD has a worse Gross Margin (17.35%) than 77.78% of its industry peers.
In the last couple of years the Gross Margin of ATD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.08% | ||
| PM (TTM) | 3.5% | ||
| GM | 17.35% |
OM growth 3Y-11.24%
OM growth 5Y5.22%
PM growth 3Y-12.65%
PM growth 5Y4.9%
GM growth 3Y-7.55%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATD is destroying value.
ATD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ATD has been reduced compared to 5 years ago.
Compared to 1 year ago, ATD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.18 indicates that ATD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.18, ATD is doing good in the industry, outperforming 77.78% of the companies in the same industry.
ATD has a debt to FCF ratio of 5.50. This is a neutral value as ATD would need 5.50 years to pay back of all of its debts.
ATD has a Debt to FCF ratio of 5.50. This is in the better half of the industry: ATD outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that ATD is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.87, ATD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.81
WACC12.39%
2.3 Liquidity
ATD has a Current Ratio of 0.98. This is a bad value and indicates that ATD is not financially healthy enough and could expect problems in meeting its short term obligations.
ATD has a worse Current ratio (0.98) than 77.78% of its industry peers.
A Quick Ratio of 0.65 indicates that ATD may have some problems paying its short term obligations.
ATD has a worse Quick ratio (0.65) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ATD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.20%.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
Looking at the last year, ATD shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
The Revenue has been growing slightly by 3.22% on average over the past years.
EPS 1Y (TTM)-10.2%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%4.62%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
3.2 Future
The Earnings Per Share is expected to grow by 5.92% on average over the next years.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y-0.16%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
EPS Next 5Y5.92%
Revenue Next Year6.97%
Revenue Next 2Y5.6%
Revenue Next 3Y4.45%
Revenue Next 5Y2.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ATD is valuated rather expensively with a Price/Earnings ratio of 18.15.
Compared to the rest of the industry, the Price/Earnings ratio of ATD is on the same level as its industry peers.
ATD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.37 indicates a correct valuation of ATD.
Based on the Price/Forward Earnings ratio, ATD is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ATD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ATD, based on the Enterprise Value to EBITDA ratio.
ATD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.62 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
The decent profitability rating of ATD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y3.85%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, ATD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.49, ATD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ATD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
On average, the dividend of ATD grows each year by 23.55%, which is quite nice.
ATD has been paying a dividend for at least 10 years, so it has a reliable track record.
ATD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
19.18% of the earnings are spent on dividend by ATD. This is a low number and sustainable payout ratio.
The dividend of ATD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.18%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
TSX:ATD (5/23/2025, 7:00:00 PM)
68.8
+0.89 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.93%
Inst Owner ChangeN/A
Ins Owners18.67%
Ins Owner ChangeN/A
Market Cap65.23B
Analysts80.91
Price Target85.75 (24.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.65
Dividend Growth(5Y)23.55%
DP19.18%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.73%
Min EPS beat(2)-4.27%
Max EPS beat(2)-1.18%
EPS beat(4)0
Avg EPS beat(4)-3.25%
Min EPS beat(4)-5.39%
Max EPS beat(4)-1.18%
EPS beat(8)3
Avg EPS beat(8)2.49%
EPS beat(12)5
Avg EPS beat(12)1.97%
EPS beat(16)8
Avg EPS beat(16)3.71%
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)-2.33%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-5.53%
Max Revenue beat(4)2.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)-0.15%
PT rev (1m)0%
PT rev (3m)-6.26%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-10.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.45%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 16.37 | ||
| P/S | 0.63 | ||
| P/FCF | 18.62 | ||
| P/OCF | 9.86 | ||
| P/B | 3.31 | ||
| P/tB | 12.15 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)3.79
EY5.51%
EPS(NY)4.2
Fwd EY6.11%
FCF(TTM)3.7
FCFY5.37%
OCF(TTM)6.98
OCFY10.14%
SpS108.48
BVpS20.77
TBVpS5.66
PEG (NY)N/A
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 18.26% | ||
| ROCE | 12.78% | ||
| ROIC | 10.09% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 17.13% | ||
| OM | 5.08% | ||
| PM (TTM) | 3.5% | ||
| GM | 17.35% | ||
| FCFM | 3.41% |
ROA(3y)9.03%
ROA(5y)9.16%
ROE(3y)22.29%
ROE(5y)22.49%
ROIC(3y)12.06%
ROIC(5y)12.01%
ROICexc(3y)12.89%
ROICexc(5y)13.35%
ROICexgc(3y)19.55%
ROICexgc(5y)20.21%
ROCE(3y)15.27%
ROCE(5y)15.21%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y-2.56%
ROICexc growth 3Y-8.97%
ROICexc growth 5Y-1.97%
OM growth 3Y-11.24%
OM growth 5Y5.22%
PM growth 3Y-12.65%
PM growth 5Y4.9%
GM growth 3Y-7.55%
GM growth 5Y2.35%
F-Score6
Asset Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 108.51% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 6.61 | ||
| Cash Conversion | 81.73% | ||
| Profit Quality | 97.42% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.18 |
F-Score6
WACC12.39%
ROIC/WACC0.81
Cap/Depr(3y)111.7%
Cap/Depr(5y)105.9%
Cap/Sales(3y)2.66%
Cap/Sales(5y)2.65%
Profit Quality(3y)90.83%
Profit Quality(5y)95.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.2%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%4.62%
EPS Next Y-0.16%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
EPS Next 5Y5.92%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
Revenue Next Year6.97%
Revenue Next 2Y5.6%
Revenue Next 3Y4.45%
Revenue Next 5Y2.78%
EBIT growth 1Y-7.8%
EBIT growth 3Y1.91%
EBIT growth 5Y8.61%
EBIT Next Year52.9%
EBIT Next 3Y19.37%
EBIT Next 5Y13.59%
FCF growth 1Y-3.27%
FCF growth 3Y0.11%
FCF growth 5Y8.2%
OCF growth 1Y14.21%
OCF growth 3Y5.64%
OCF growth 5Y9.33%